#USA #New York #Securities Fraud #Pomerantz LLP #MediaAlpha

Investor Alert: Investigation of MediaAlpha, Inc.

The Pomerantz Law Firm has taken a proactive stance in investigating claims on behalf of investors of MediaAlpha, Inc., a company listed on the NYSE under the ticker MAX. This investigation highlights potential securities fraud or unlawful business practices involving the company's operations. Investors seeking more information can reach out to Danielle Peyton at Pomerantz LLP.

Background

Recently, serious allegations surfaced against MediaAlpha, particularly focusing on its health insurance segment. On June 24, 2024, Wolfpack Research published a damning report titled "MAX Our Investigation Reveals MAX Is Participating in Consumer Fraud." This investigative report reveals that MediaAlpha allegedly uses misleading advertisements and deceptive websites that lure consumers into providing their personal information in exchange for what is marketed as health insurance quotes. The intention behind this tactic is to sell this personal information to telemarketers, raising serious ethical and legal concerns.

Wolfpack’s findings suggested that up to 78% of MediaAlpha's health insurance lead-buying partners might be involved in fraudulent activities, indicating a need for scrutiny over the company's practices. The impact of these revelations was immediate, as MediaAlpha's stock price declined significantly — a reported drop of $1.92 per share or 11.84%, closing at $14.29 on June 25, 2024.

FTC Involvement

The investigation deepened when, on November 4, 2024, MediaAlpha received a letter from the Federal Trade Commission (FTC). The letter indicated that FTC staff was prepared to recommend legal action against the company due to misleading claims about its affiliation with government entities and deceptive advertisements related to health insurance products. These allegations further fueled concerns, causing a sharp plunge in MediaAlpha's stock price, which fell $4.46 per share, equating to a 27.7% drop, reaching $11.62 per share by November 5, 2024.

In a shocking twist, on August 6, 2025, MediaAlpha announced it was settling claims with the FTC for a substantial $45 million. The settlement was a result of the FTC's findings that the company was fraudulently collecting consumer information under the pretense of providing health insurance quotes, only to sell this data to telemarketers. The FTC revealed that in the year 2024 alone, MediaAlpha had sold approximately 119 million leads regarding consumers looking for health insurance.

The Role of Pomerantz LLP

Pomerantz LLP, with its prestigious reputation as a prominent law firm specializing in corporate and securities litigation, is stepping in to ensure that the rights of affected investors are protected. Founded by the esteemed Abraham L. Pomerantz, often referred to as the father of class action litigation, the firm has a robust history of fighting against corporate misconduct and securities fraud. Over its 85-plus years of operation, Pomerantz has successfully recovered substantial damages on behalf of its clients.

Investors are encouraged to stay informed and reach out to Pomerantz if they have encountered any issues related to MediaAlpha’s stock or business practices. The law firm's commitment to transparency and investor rights signifies a move toward accountability in corporate America.

Conclusion

The unfolding situation at MediaAlpha serves as a critical reminder of the importance of transparency in corporate governance and the role of law firms like Pomerantz in safeguarding investor interests. As investigations continue, stakeholders will be watching closely for further developments. Anyone with relevant information or who feels they have been harmed by the company's actions is advised to contact Pomerantz to explore their legal options.

For more information, visit Pomerantz LLP's website or contact Danielle Peyton at 646-581-9980, ext. 7980.